08/10/2021 Zee-Sony merger: Zee-Sony merged entity to be number one player in entertainment space: Ashwin Patil - The Economic

win Patil - The Economic Times

English Edition | 08 October, 2021, 09:33 AM IST | E-Paper

Zee-Sony merged entity to be number one player

in entertainment space: Ashwin Patil
Synopsis
“The merged entity will be the number one player in the entertainment space with more than 35% to 40% market share. Of this, Zee has
about 18-19% share. ”

The deal is good for Zee as also for Punit Goenka, who will be there for the next five years. He
ETMarkets.com

will be serving the merged entity as he has been serving Zee earlier, says Ashwin Patil, Senior
Fundamental Analyst, LKP Advisory.

On the merger of Zee Entertainment NSE 1.28 % with Sony India

This was on the cards for the last two to three years. On and off discussions were going on
RELATED with Sony Pictures, Reliance etc. The merger with Sony has been finalised and finally this
Zee Entertainment-Sony news is coming out. Zee will be in minority with less than 50% or 47% to be exact share in the
Pictures deal: 8 things you
need to know about today's merged entity and Sony will have an upper hand with close to 52-53% stake in the entity. I
big bang deal
would say it is good for Zee as also for Punit Goenka, who will be there for the next five years.
Zee Entertainment surges He will be serving the merged entity as he has been serving Zee earlier.

24% after merger

announcement with Sony

The merged entity will be the number one player in the entertainment space with more than
Sony comes to Zee
Entertainment’s rescue, 35% to 40% market share. Of this, Zee has about 18-19% share. Sony has a very big portfolio
signs term sheet for merger
and has sports channels. Zee will also have good access to Sony’s various genre while Sony
will have access to Zee’s regional channels. The merged entity will be a formidable host to
take on its competitors. Financially, we will have to take a close look at it.

Stock Score, Analysts' Ratings & Recommendations

EARNINGS

FUNDAMENTAL Stock score of Zee

RELATIVE VALUATION Entertainment Enterprises Ltd
RISK moved down by 1 in a month on
PRICE MOMENTUM a 10-point scale.

VIEW LATEST STOCK REPORT

Will this consolidation rerate the entire media sector now?

India has four major broadcasting channels or players -- Star, Colours, Zee and Sony. Out of these four, two are getting
merged. Sun TV is also there but that is in the regional markets of South India. So the new entity is definitely going to be
a big player on the global platform as well as in India. Definitely, it should be something for the investors to look at from
Zee point of view because Sony is not listed in India. I think that it is a well designed merger. Financially we need to look
at it because we need to have some clarity on its top line, how the merged entity will look like in profitability terms etc.
Prima facie, it is a good kind of a merger.

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08/10/2021 Zee-Sony merger: Zee-Sony merged entity to be number one player in entertainment space: Ashwin Patil - The Economic Times

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